(Editor's Note: This is third of a 4-part special report on sin taxes.)

MANILA, Philippines - When the sin tax reform bill is compromised, so are health care plans for the poor.

This is because under the proposed bill, about 85% of annual incremental revenues from excise taxes on so-called sin productstobacco and alcoholwill go the government's universal health care (UHC) program.

If lower taxes on the products are adopted, a large portion of the investment the program planned for the upgrade of public hospitals, which cater primarily to the poor, will not push through.

Worse, it's possible that the number of poor families that were promised health insurance under the program will not be fully covered.

The Senate, through the ways and means committee chaired by Ralph Recto, appears bent on further watering down the measure that had already accommodated compromises in the House of Representatives.

The original version of House Bill (HB) 5727, authored by House appropriations committee chair Joseph Emilio Abaya, was projected to generate for government P60 billion in the first year of implementation. But what the House eventually passed cut the revenues to practically half, at P31 billion.

With lower revenues, funds for the UHC will also be reduced.

What we plan to spend on UHC will be reduced significantly, said Department of Finance (DoF) Assistant Secretary Teresa Habitan.

Original post:

Lower sin tax, less health care for poor